Virginia employers with two or more part-time or full-time employees or subcontractors are required to carry Workers' Compensation coverage. Sole proprietors or LLC members are only exempt from coverage requirements if the total number of employees is less than two.
Unlike some other states, Virginia does not offer many exceptions to required Workers' Compensation coverage. However, a single member LLC or sole proprietorship that does not have additional employees or subcontractors is exempt from required coverage.
Employers in Virginia that provide Workers’ Compensation coverage are required to file a report of any accident or injury with the Virginia Workers’ Compensation Commission within 10 days of learning of the injury.
Uninsured employers in Virginia can be subject to a civil penalty of up to $250 per day, for the maximum civil penalty of $50,000. Additionally and importantly, employers that hire subcontractors must count the employees of their subcontractors as their own employees for Workers’ Compensation purposes.
Does a sole proprietor with no employees need to carry Workers' Compensation insurance in Virginia?
A sole proprietor with no employees in Virginia is not required to carry Workers' Compensation coverage for himself or herself. However, he or she can choose to cover himself or herself as an employee, providing the same medical payment and income replacement benefits available to any other employee through Workers' Compensation coverage.
How does an employer obtain insurance in Virginia?
In Virginia, Workers' Compensation coverage is only available through the private market, which means that you can purchase coverage through a licensed agent or broker in the state. You can also get your business insured quickly using an online portal such as CoverWallet, which can also provide you with other essential business insurance coverages.
How much does Workers' Compensation insurance cost in Virginia?
On average, Virginia is among the most affordable states for businesses that need to purchase Workers' Compensation coverage. Rates are determined by multiple factors, including the type of work being performed, your business’s safety or claims record, as well as the payroll for your business. This method of calculating rates generally rewards lower risk businesses with more attractive rates.
If I only hire independent contractors, do I need coverage in Virginia?
Whether an independent contractor is considered to be an employee in Virginia is dependent upon several factors. The greatest factor is whether the business that hires an independent contractor exercises control over the means and method by which the work is performed. If the work of an independent contractor is closely supervised and directed, it's likely that the independent contractor will be legally considered to be an employee and will need to be insured.
Can I exempt an employee from my policy in Virginia?
Virginia requires nearly all employers with two or more employees to carry Workers’ Compensation coverage. If your business only employs one worker, coverage is optional for the state but may be required for contract work when working for other companies.
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